Keppel O&M Secured Two Jackup Rigs Worth up to S$155 Million From Ades
Keppel Offshore & Marine Ltd. has, through its wholly-owned subsidiaries, signed bareboat charter contracts with ADES Saudi Limited Company for two jack-up rigs to be deployed in Saudi Arabia. This expands their partnership between the two companies to four, making it the strongest of its kind in the region.
Keppel O&M will enter into a chartering agreement with Keppel Corp Marine for the use of six ultra-deepwater drillships that they expect to commence on Jan 2019.
Keppel O&M has secured its fifth and sixth bareboat charters this year, with more high-quality drilling rigs of the company’s proven KMELS B Class design.
ADM685 and ADM686 were the two rigs currently being operated under bareboat charters in order to meet the initial demand, with subsidiaries of Grupo R. However, these charters have been terminated due to unremedied events of default by the charterers. ADM685 and ADM686 are currently in Mexico, where they will be transported for modification works before commencing their new charter contracts with ADES.
Keppel O&M is pleased to receive a repeat contract from ADES to charter two more of its jack up rigs. With the rig’s digital automation systems, operations are safe, efficient and easy for the crew.
As a leading jack up rig company, our B Class rigs have secured contracts or charters to places like the Gulf of Mexico, but are also well-suited to other global markets. We keep our fleet up and running with excellent service from both components and personnel, so that you can easily turn your rig into cash.
With the approval under DPOC from the SCC, these two rigs are part of Keppel O&M’s legacy rigs. They and their bareboat charter agreements will be transferred to Asset Co after legal completion as majority-owned by external investors.
Contracting with a bareboat charter company is always beneficial, but it is not expected to have any material impact on Keppel Corporation Limited’s net tangible assets and earnings per share for the current financial year.